Want to learn how to screen stocks for sharia compliance on your own? Enroll in our course to learn how! practicalislamicfinance.teachable.com/p/the-practical-guide-to-screening-stocks-for-sharia-compliance
Knowledgeable People Please Respond.... In certain regions of India, a trend has emerged where groups encourage people to invest in trading with a minimum investment of 1 lakh rupees, promising a fixed 10% return each month regardless of profits or losses. Although the group claims to invest in halal stocks, the process lacks transparency, leaving investors uncertain about how the promised returns are generated. The question arises: can this type of trading be considered halal, even though it involves investing in halal stocks?
@@practicalislamicfinance Sir, In india during day trading brokers allow us to sell the stock first and when day is about to come to an end you must buy it ... During sell money from demat account also deducted... So I want to ask is it permissible to sell the stock and then buy??? Please reply
Leverage is not a lone, if it was, then if I lost my whole account I should pay the loan back, but no one does. The second thing is, brokers do not benefit because of the loan (as you name it) they benefit from the spread between two currencies. Don't expect that they will allow you to use the platform for nothing. Just like if you want to rent soccer hole, you have to pay for it to be able to play soccer. We pay to be able to trade, not because of the leverage.
Alhumdulillah brother..I was margin trading ..thanks to you I'm closing my trading account today..m emotional now..par allah have mercy on me .. Ramadan Kareem mubarak ❤️
@@luqmanhisham6093 assalamualaikum brother, my question is it halal to trading crypto because I make a lot of research and somehow there's lot of that say it's halal or permissable...and also they say forex also halal now because the things is haram when it's written in holy Qur'an and what was mentioned by Holy Qur'an is gambling and riba they say...
@@ehsankhorasani_ brother i have a question which is bothering me alot For ex: in binance i buy dogecoin (in spot trading) for a cheap price and after hours/ a day the price increases and then i sell it for profit , then after a day i re-buy it again So is this halal? Yes or no only plz
Salaam brother, is there a chance of us seeing what companies you have invested in your portfolio? A weekly update on what you bought and sold is another suggestion I would love too see inshaaAllah
From investopedia :"As an example of how settlement dates work, let's say that an investor buys shares of Amazon (AMZN) on Monday, Jan. 28, 2019. The broker will debit the investor's account for the total cost of the order immediately after its filled, but the status as a shareholder of Amazon will not be settled in the company's record books for the investor until Wednesday, Jan. 30. At that time, the investor would become a shareholder of record."
@@Dhabaryare thank you very much brother may Allah bless you It eas just an example from investopedia my self i never trade stocks as many scholars sayed they are not for trading but only holding I only trade platinum and palladinum Etf s
Brother Salam o alaikom wa rahmatullah Thank you so much for taking your precious time explaining day trading to us! Including myself, there ton of other brothers who exactly want to know what you have just made available. Keep up the good work my dear brother and may Allah SWT reward you for explaining it to us.
So key take away from this is you can't re-invest the money you make from a sale until the amount has settled, but you can buy and then sell a stock on the same day.
What you mean cash to settle..... if you sell as soon as the sell is executed sometime it takes only minutes or depend on where you put your limit sell it will be executed right away and you will have the money available in your account
Thanks a ton for this well researched explanation. Helps to focus my trading more on the basis of Islamic morality and guidance, and reject trading methods that are not in line with the deen. Cheers and salaam to you.
Sir, In india during day trading brokers allow us to sell the stock first and when day is about to come to an end you must buy it ... During sell money from demat account also deducted... So I want to ask is it permissible to sell the stock and then buy??? Please reply
When I close a sell trade, the cash is immediately credited into my account. I'm able to use that cash straight away to either buy more stocks or withdraw cash. I'm in the UK
I bought the course of Zed Monopoly, an Irish guy. I studied it and I was wondering about all these questions. I see most of them getting answered on your channel. Thank you.
the question was simple, the answer should have just been straight yes or no. if you did need to say anything extra it should have to been 'To get to a level of being able to make living off day trading you must learn and practise. dont quite your job until you are comfortable with the way you trade. until you fully understand your risk management. finally make a plan.'
If swing trading is halal, then there's no reason for day trading to be Haram. It's the same thing on a different time frame. Both requires technical analysis and money management. Without the two, you can win a lot or lose it all in both.
Amazing stuff! I wish this was available to me a few months or even years ago, but either way, I am happy I stumbled upon your channel now 😂 Thank you so much, and Walaikum Assalam 😁
This is a very informative video and clears my confusion on the islamic perspective of cash and margin accounts. May Allah SWT bless you and us with his guidance throughout.
but what if the broker does not have commission costs? What is your opinion on using leverage? because the broker doesn't really benefit on the trade except on spreads but spreads is calculated in the trade regardless if you use leverage or not. And the loan actually benefits the two parties because some assets you can't trade because they are just too expensive and your broker wants you to trade that is how they make money.
13:18 - I still have some confusion - I can see the transaction in a completely different way where I transferred the ownership of my stock to the broker and in return they credit amount in my account. Whether they are acting as a middle man or selling it to another member its in their hand. Rest is the business process time for making the amount available to cash out. In any business you buy/sell the inventory on credit. Similarly, if this is the case then using credit card will be termed as haram too as they also give us loan and definitely not as Qarz e Hasanat. Apologies! If it is very simple and I am not getting it.
Bro credit card is haram because when we make a credit card we already agree for payment of interest on the papers etc if due date is gone on a transaction payment, we are humans and can never guarantee that we will always pay on time
What happens if I don't wait in a cash account for the money to be there, and I buy another stock? Am I borrowing money which has interest or no interest will be accrued, or does the account show I'm getting the funds soon so I can use it, resulting in no interest? I'm basically use my pending money, money that is on its way to me to buy more stock to sell again. Please help me to see why this is wrong. (I do agree any interest of any kind/amount is wrong.)
Assalamualaikum brother. I have a few questions. 1. Can I apply day trading to crypto? 2. How many days or the shortest period should I consider holding my trade position so it's compliance with sharia law.
Salam bro. Thanks for all you do. My question is: if it's a crypto currency like BTC instead of stock, is it halal to day trade it (since the funds settles same day)?
Assalamualaikum..great video . questions what about after selling stock we have instant settlement on Robinhood can we use that money which we invested not the profit to buy another stock?? With the original money ... please let me know
If you sell stocks it takes two days for your funds to settle, in Robinhood you have instant buying power because it's a margin account and they are letting you use their money wile your money settles even though their not giving you anything extra.
Asselamualikum. Great explanation. But why do I have to depend on cash that I just made profit to buy another stock. Instead, can't I use the remaining cash in my account that I didn't use for my initial trade to make another purchase?
6:48 what does "sale to settle" really means? when i sell xyz stock for a $1000,then i had cash on that platform $1000 and I'm not allowed to buy stock unless i withdraw to my local bank and i buy stock and paid it using my local bank???
As salamu alaykum , So what‘s the difference between a perpetual future trade and a trade with a cash broker as you described? I remember you considered perpetual futures as prohibited. Jazak Allahu khayran
We are using trading 212, the moment we sell the share money is immediately available to buy other shares .is this a loan extended by the broker or it's a cash money? quite confused!
@@practicalislamicfinance salam alikom Rakaan. Great work. I use Trading 212 too and to be honest couldn't really understand how it works. All the buying/selling happen immediately and you can use the money mtiple times as you wish. However their T&Cs explain settlement takes t+2 or t+3.. also mentions they may settle transactions on a "delivery versus payment basis" but I have jo idea what it means. I use their ISA invest account (NON CFD account, non margin). All trades happen (over the counter).. is this halal? Is this similar to what you describe in the video or completely different? If you could shed some light on this I would be grateful as a lot of us in UK/EU use this app and other 0 commission apps. Thanks Motaz
@@motazinenglish8190 would love an answer on this, many of us are in a similar position, if we have no intention of cashing the money out once we sell a share it is available to us immediately so we can re invest as cashing it out and then putting it back in to invest does not make sense to me
This is a good question. I would like to provide an answer to this based on my research. Firstly Trading212 is a Cash Account NOT a Margin Account. So as per this video it falls into the first category which Rakaan explained. It does not provide a Margin or any Interest type payment for you to buy stocks on sale of your stock. The way you get your money instantly on sale of your stocks is by a process called Delivery versus payment. The process involves the simultaneous delivery of all documents necessary to give effect to a transfer of securities in exchange for the receipt of the stipulated payment amount. So before the actual settlement takes places which is T+2 or T+3, you get your money. It is like you giving your car documents to the buyer of the car and taking all the money from the seller but telling the seller you can collect the car in T+2 or T+3 days. In this was the buyer is happy that he got the full money and the seller has the car documents to prove that the car is his now. I don't see anything wrong in this type of transaction. Rest Allah knows best.
In india, same here in zerodha app... money is available immediately after sale... eventhough actual settlement take pkace after t+2 days. But the brocker doesnt charge interest for this amount available... is it haram.?
Thank you, I just switched from Robinhood Margin account which is default to Robinhood cash account. This will prevent me from using the unsettled amount before the processing days. Margin account by default violates the halal requirements
Awesome video! Thank you so very much for the info. I have a Robinhood Gold account. Robinhood Instant and Gold accounts are Margin Accounts. Having said that, you have the option of turning off Margin Investment. Also, Robinhood states that deposits are made available instantaneously. Does this mean that we do not have to wait 3 trading days to buy again after selling?
I suggest you start a playlist of who to start trading stocks from A to Z, if you say it is Halal. Because as I know stocks also uses leverage. Will be waiting for your response brother.@parctical Islamic Finance
May Allah reward you brother! I was really concern about validity of making day trades but you made it very clear. With due respect, since it's a very crucial matter, I was just wondering if you have Islamic credintials to make such comments?
Just because Margin account allows you to short sell and has riba, doesn't mean you have to use it. I day trade on a margin account but I never short sell or use the money I don't have. Also, I'm not sure what you mean by recieving money in 2-3 days because I always get my money the second I click sell, just like most brokers do these days. Great indepth video though.
@@abbamusa6607 hmm...I'm not so sure about that. That's like saying you can't eat halal food on a dinner table where there's pork. If I can confirm your statement, I will try to find an alternative.
I have a cash account on T212, when I sell shares the money is back in my t212 account within 1 minute & the shares i sold are gone i no longer own them so can i then use that money again as it is with me
Thanks for the video! While talking about the margin account, you mention that there are only two types of loans in Islam, charitable and Ribawi loans. And then you make the assertion that the only type of loan that the lender is giving is a Ribawi loan, since there is some benefit that the lender is getting out of it. You mention interest as only one possible benefit, but not the only one. But you didn't specify what other benefits the lender is getting from lendingapart from interest. Could you elaborate on that?
Hi brother, salam, thsnk u for your video very insightful as always. I do have a question , i use etoro and if i close an account/ close the stock the money actually hits my etoro account straight away. In that case isbjt permisabble for me to use the funds to purchase another stock? As its already in mg available balance. Thank u in advance
Does this mean there is no margin given for CNC (cash and carry) trades ?? (Specific to Indian traders) Found this on the margin policy page of zerodha At Zerodha we provide no leverage when you are executing delivery trades which mean that you if you want to buy Rs 1lk of stock as CNC, you will need this Rs 1lk in your trading account and similarly if you want to sell Rs 1lk of shares with product type as CNC, you will need these shares in your demat account mapped to your trading account.
Hello! Thank you for all the information that you provide for use, so my major is finance and international trad can you advise me what could I do for work in halal way. thanks in advance.
1. Is Day Trading/Buying/Investing in coins like BNB where in the company-Binance- which owns BNB deals indulges in Crypto Loans and giving and taking interests? 2. Could you make a video on DeFi and specific COINS which are Halal or Haram based on the Tokenomics or source of income or idea behind the project.
Thanks really all what u always said is amazing but I want to ask about binary option if it is done based on studies and graphs it will be halal or haram ?
I am waiting for an answer in relations to HFX trading using technical and fundamental analysis to trade. I want to know if it's halal and how I can trade with a broker, haram things to avoid and how to trade in an halal way.
Salaam, why would you compare day trading returns on Warren Buffet/any investor returns? Warren buffet or people looking for annual returns on their investments are not day traders so this would be a false comparison? Successful day trading would require making small profit percentage trades against your losses, and is therefore a completely different percentage return analysis?
am waiting for an answer in relations to HFX trading using technical and fundamental analysis to trade. I want to know if it's halal and how I can trade with a broker, haram things to avoid and how to trade in an halal way.
JAZAKOM ALLAH KAYRAN for your videos My remark is about precious metals etfs which are shariah compliant The settlement is t+2 in general and if they are halal (hand to hand) how it is permissible to trade them many times per day and even if we wait for the settlement like stocks to buy again how they are shariah compliant ?
I have cash account with three different brokers for day trading & always wait until my cash settle before the next purchase. Margin account is so risky & haram too.Thank you brother for your great advice.
For most stock trades, settlement occurs two business days after the day the order executes. For example, if you were to execute an order on Monday, it would typically settle on Wednesday. Day-trading with unsettled funds and debit balances are prohibited in cash accounts. ... You must have all the cash in your account prior to entering an order. A cash account will be put on 90-Day Restriction, if a security is bought and sold without being fully paid for.
brother with all deu respect those people you nemed are not day trading. they are investor longterm but if youre a day trader like WWA,RCV,ICT ext.... they make each day around 20 percent.
I don’t get what you mean in regards to the sale settling before the proceeds are used for any trade. I personally use a Robinhood cash acc and instead of withdrawing my profits into my bank account, I use that buying power (cash ready after trade is complete) to establish a bigger position during the next trade and exponentially grow the amount I allotted myself for day trading. Does this qualify as sales settling?
Yes this is what I was thinking. Money is digitally available on the screen and can be used again to trade. I assume from this video you can only trade once a week (3 days settling and process of withdrawal) and take earnings out into your personal account and then trade again? That doesn’t make sense. This way no more money can be made and for this you’re talking about very big accounts.
@@misszara786 yes wouldn’t make too much sense. There’s Hadith that prohibits futures/options trading but no solid evidence against day trading, that I know of of course
Day trading is halal. Many scholars give fatwa without even knowing how it works or having any experience in the stock market. How is it gambling when you have a stop loss and know how much you will lose at most?
Want to learn how to screen stocks for sharia compliance on your own? Enroll in our course to learn how!
practicalislamicfinance.teachable.com/p/the-practical-guide-to-screening-stocks-for-sharia-compliance
In basic is it Halal or haram brother
Knowledgeable People Please Respond.... In certain regions of India, a trend has emerged where groups encourage people to invest in trading with a minimum investment of 1 lakh rupees, promising a fixed 10% return each month regardless of profits or losses. Although the group claims to invest in halal stocks, the process lacks transparency, leaving investors uncertain about how the promised returns are generated. The question arises: can this type of trading be considered halal, even though it involves investing in halal stocks?
How about if day trading is funded by a securities firm without interest, only incurring transaction fees for each purchase and sale?
May Allah save you from all haram and grant you baraka in your life. This video clarified me a lot. Thank you
Im not muslim but i find many things from religion very good to follow even if i dont call me a muslim
Hi Letsbefree
Are you interested to know more about this beautiful religion ?
I will tell you about soul
@@aboabdulla18 yeah i would like to read the koran in my own language someday :) but i also want to read the bible :)
@@letsbefreeletsbefree7183 you can read both, and it's quran👍
i respect you and hope you be a muslim one day, as many muslims don’t know about islam, you have a good heart
May Allah Grant barakah in your wealth and efforts
Thank you brother, to you as well.
@@practicalislamicfinance Sir, In india during day trading brokers allow us to sell the stock first and when day is about to come to an end you must buy it ... During sell money from demat account also deducted... So I want to ask is it permissible to sell the stock and then buy??? Please reply
MashAllah, I like how you make explanation videos about tradings based on islamic laws. Stay motivated and may Allah forgive you for your mistakes.
Salamu Alaykum Omer abi! Sizden Tradingla alakalil biseyler sorabilirmiyim? Australiyadan Ahmet
@@akilic958 buyur canim
Selamun aleyküm, İslamın uygun hisselerin listesi yok mu, bu konuda yardımcı olursanız sevinirim
Leverage is not a lone, if it was, then if I lost my whole account I should pay the loan back, but no one does. The second thing is, brokers do not benefit because of the loan (as you name it) they benefit from the spread between two currencies. Don't expect that they will allow you to use the platform for nothing. Just like if you want to rent soccer hole, you have to pay for it to be able to play soccer. We pay to be able to trade, not because of the leverage.
brother i think you are talking about forex, their is a sep video on that. the haram part is the riba in leverage becareful
Alhumdulillah brother..I was margin trading ..thanks to you I'm closing my trading account today..m emotional now..par allah have mercy on me .. Ramadan Kareem mubarak ❤️
Can i do intraday trade with leverages?? Pls explain bro
@@jumahcontracting6946 levrage trade is haram in islam because it involves interest
Dont close your account bro just try another types of trading which are halal like forex trading etc
@@letsunbox8977 i’m sorry brother, but forex trading is indeed haram 😔 all peace and love buddy ✌️
@@luqmanhisham6093 assalamualaikum brother, my question is it halal to trading crypto because I make a lot of research and somehow there's lot of that say it's halal or permissable...and also they say forex also halal now because the things is haram when it's written in holy Qur'an and what was mentioned by Holy Qur'an is gambling and riba they say...
Jazakallahu khairan, I finally found a video which explains logically and clears my doubts on minimum amount of share holding time
Day trading halal or haram? Mention holding time
Common stock and live stock 😂
Now i get it, took me a while to understand as a noob
haahahahahaha
Salaamualekum my brother can we buy or invest on bitcoin.
@@museowe6532 yes you can
@@ehsankhorasani_ brother i have a question which is bothering me alot
For ex: in binance i buy dogecoin (in spot trading) for a cheap price and after hours/ a day the price increases and then i sell it for profit , then after a day i re-buy it again
So is this halal? Yes or no only plz
Salaam brother, is there a chance of us seeing what companies you have invested in your portfolio?
A weekly update on what you bought and sold is another suggestion I would love too see inshaaAllah
Rakaan posted this in the video description: m1.finance/tDYnHCZW63WY
subhanallah, very important video... jazakallah khairan
From investopedia :"As an example of how settlement dates work, let's say that an investor buys shares of Amazon (AMZN) on Monday, Jan. 28, 2019. The broker will debit the investor's account for the total cost of the order immediately after its filled, but the status as a shareholder of Amazon will not be settled in the company's record books for the investor until Wednesday, Jan. 30. At that time, the investor would become a shareholder of record."
Don't trade Amazon it is haram
Use Zoya app to distinguish what stocks is haram or halal! Good luck
@@Dhabaryare thank you very much brother may Allah bless you
It eas just an example from investopedia my self i never trade stocks as many scholars sayed they are not for trading but only holding
I only trade platinum and palladinum Etf s
Broker here in HK. Cash is available as soon as shares sold and we dont have to buy on margin. That's ok then.
Thank you brother. You have the most clear answers I've always been looking for . MashAllah
Right ✅
I took to comments several times to criticize but every time you answered my critisim already. Good video. Risk and rewards is the key.
Just watched the whole vid and read all the comments. Thanks Rakaan for the valuable input.
helal or haram?
Brother Salam o alaikom wa rahmatullah
Thank you so much for taking your precious time explaining day trading to us! Including myself, there ton of other brothers who exactly want to know what you have just made available.
Keep up the good work my dear brother and may Allah SWT reward you for explaining it to us.
My pleasure!
@@practicalislamicfinance Salaam brother. Can you please put timestamps if possible???
Salam alikom...
Its haram or halal
Forex Day Trading using Auto Trading is giving great results...!! Alhumdulilah.
Great message!!
Is forex Auto trading halal ??
So key take away from this is you can't re-invest the money you make from a sale until the amount has settled, but you can buy and then sell a stock on the same day.
My Allah bless this brother and ascend home to The Firdous. Awesome explanation
Dude mashallah man!!! I love your video's Keep it up!!!
Robinhood and many other trading platforms do not charge interest for trading with unsettled fund
What you mean cash to settle..... if you sell as soon as the sell is executed sometime it takes only minutes or depend on where you put your limit sell it will be executed right away and you will have the money available in your account
Thanks a ton for this well researched explanation. Helps to focus my trading more on the basis of Islamic morality and guidance, and reject trading methods that are not in line with the deen. Cheers and salaam to you.
Sir, In india during day trading brokers allow us to sell the stock first and when day is about to come to an end you must buy it ... During sell money from demat account also deducted... So I want to ask is it permissible to sell the stock and then buy??? Please reply
Brother, what is the marketplace for this day trading? Is it on forex ?
@@sayyedahteram8559 thats short selling and is haram. Because u sell what dont own + u pay interest on those shares u borrowed
If we do trading with cash account and all analysis, neither scalping nor riba is included is forex permissible then ???
When I close a sell trade, the cash is immediately credited into my account. I'm able to use that cash straight away to either buy more stocks or withdraw cash. I'm in the UK
What trading platform do you use?
Which trading plate form
I bought the course of Zed Monopoly, an Irish guy. I studied it and I was wondering about all these questions. I see most of them getting answered on your channel. Thank you.
Which course?
Guys i didnt understand well so is it haram or halal to day trade
How did u do so far? I wanted to buy the course too
the question was simple, the answer should have just been straight yes or no. if you did need to say anything extra it should have to been
'To get to a level of being able to make living off day trading you must learn and practise. dont quite your job until you are comfortable with the way you trade. until you fully understand your risk management. finally make a plan.'
If swing trading is halal, then there's no reason for day trading to be Haram. It's the same thing on a different time frame. Both requires technical analysis and money management. Without the two, you can win a lot or lose it all in both.
@@MosestheMuslim bro yes I understand and agree with you. I just don't understand why poeple make pointless videos and go off topic.
JAZAKALLAH brother. May ALLAH bless you ❤
Amazing stuff! I wish this was available to me a few months or even years ago, but either way, I am happy I stumbled upon your channel now 😂
Thank you so much, and Walaikum Assalam 😁
This is a very informative video and clears my confusion on the islamic perspective of cash and margin accounts. May Allah SWT bless you and us with his guidance throughout.
but what if the broker does not have commission costs? What is your opinion on using leverage? because the broker doesn't really benefit on the trade except on spreads but spreads is calculated in the trade regardless if you use leverage or not. And the loan actually benefits the two parties because some assets you can't trade because they are just too expensive and your broker wants you to trade that is how they make money.
13:45 for quick answer
Hero
Thanks for that!
13:18 - I still have some confusion - I can see the transaction in a completely different way where I transferred the ownership of my stock to the broker and in return they credit amount in my account. Whether they are acting as a middle man or selling it to another member its in their hand. Rest is the business process time for making the amount available to cash out. In any business you buy/sell the inventory on credit.
Similarly, if this is the case then using credit card will be termed as haram too as they also give us loan and definitely not as Qarz e Hasanat.
Apologies! If it is very simple and I am not getting it.
Bro credit card is haram because when we make a credit card we already agree for payment of interest on the papers etc if due date is gone on a transaction payment, we are humans and can never guarantee that we will always pay on time
This is great. Always wondered if there was any issue day trading crypto. Margin trading obvs interest involved so not allowed
jazak Allah khair brother, the video was really helpful
What happens if I don't wait in a cash account for the money to be there, and I buy another stock? Am I borrowing money which has interest or no interest will be accrued, or does the account show I'm getting the funds soon so I can use it, resulting in no interest? I'm basically use my pending money, money that is on its way to me to buy more stock to sell again. Please help me to see why this is wrong.
(I do agree any interest of any kind/amount is wrong.)
You know the practical aspects very well , so your evidences on physical & digiral possession is great.
What about the speculation aspect ?
Is speculation based on TECHNICAL ANALYSIS halal ?
every trade or investment is speculation. the real concern is volatility and managing risk
Assalamualaikum brother.
I have a few questions.
1. Can I apply day trading to crypto?
2. How many days or the shortest period should I consider holding my trade position so it's compliance with sharia law.
Assalamu alaykum brother, I have the same question. Did you find out if crypto day time trading is acceptable in Islam?
@@digitalconsultinguz4360 did you get answer for it?
Same question?
Hello is short term trading halal can I buy today and sell in a week for profit?
If you're living in those country where crypto is legal to trade then you can do trade intraday in same ways according to this video.
Alhamdulillah you covered everything
thank you
Thank you for the explanation. I was looking for this. Jazaka'Allahu khayran.
the settle time changed to next day settling, so makes day trading easy
Alhamdulillah Brother.. You Explain Very Well ❤️👌.
Great video, with best knowledge and very well explained, now I have no confusion about halal and haram thank you so much
Salam,
What is the market place for this day trading? Is day reading being discussed here possible on forex ? If yes , how ? Will it be halal?
MashaAllah Very nice presentation very helpful thank you so much
Thanks a lot for lesson, it is short but to the point, barakallah 😊
JazakAllahu khair Brother 👍
Day trading is speculating on the price to move in the way you predict it to. Speculation is betting.
Salam bro. Thanks for all you do.
My question is: if it's a crypto currency like BTC instead of stock, is it halal to day trade it (since the funds settles same day)?
No issue if spot trading
Assalamualaikum..great video . questions what about after selling stock we have instant settlement on Robinhood can we use that money which we invested not the profit to buy another stock?? With the original money ... please let me know
Hope he replies soon, am in the same boat
If you sell stocks it takes two days for your funds to settle, in Robinhood you have instant buying power because it's a margin account and they are letting you use their money wile your money settles even though their not giving you anything extra.
@@grizzlyman329 So what's the status in this case? Halal or haram?
Asselamualikum. Great explanation. But why do I have to depend on cash that I just made profit to buy another stock. Instead, can't I use the remaining cash in my account that I didn't use for my initial trade to make another purchase?
@@peledood999 Sure you can. Except sometimes we don't have spare cash in our account.
Margin is not a loan, it's a tool to magnify your purchasing power
Nice efforts
May Allah bless you.
Habibi warren Buffett isn't a trader. He is an investor. These are two different things....
6:48 what does "sale to settle" really means?
when i sell xyz stock for a $1000,then i had cash on that platform $1000
and I'm not allowed to buy stock unless i withdraw to my local bank and i buy stock and paid it using my local bank???
What about Volume Trading
As salamu alaykum ,
So what‘s the difference between a perpetual future trade and a trade with a cash broker as you described?
I remember you considered perpetual futures as prohibited.
Jazak Allahu khayran
I didn’t know that your cash has to settle before you can use it again 😢😢😢
We are using trading 212, the moment we sell the share money is immediately available to buy other shares .is this a loan extended by the broker or it's a cash money? quite confused!
Check the settlement time for your broker
@@practicalislamicfinance salam alikom Rakaan. Great work. I use Trading 212 too and to be honest couldn't really understand how it works. All the buying/selling happen immediately and you can use the money mtiple times as you wish. However their T&Cs explain settlement takes t+2 or t+3.. also mentions they may settle transactions on a "delivery versus payment basis" but I have jo idea what it means.
I use their ISA invest account (NON CFD account, non margin). All trades happen (over the counter).. is this halal? Is this similar to what you describe in the video or completely different?
If you could shed some light on this I would be grateful as a lot of us in UK/EU use this app and other 0 commission apps.
Thanks
Motaz
@@motazinenglish8190 would love an answer on this, many of us are in a similar position, if we have no intention of cashing the money out once we sell a share it is available to us immediately so we can re invest as cashing it out and then putting it back in to invest does not make sense to me
This is a good question. I would like to provide an answer to this based on my research.
Firstly Trading212 is a Cash Account NOT a Margin Account. So as per this video it falls into the first category which Rakaan explained. It does not provide a Margin or any Interest type payment for you to buy stocks on sale of your stock.
The way you get your money instantly on sale of your stocks is by a process called Delivery versus payment. The process involves the simultaneous delivery of all documents necessary to give effect to a transfer of securities in exchange for the receipt of the stipulated payment amount.
So before the actual settlement takes places which is T+2 or T+3, you get your money. It is like you giving your car documents to the buyer of the car and taking all the money from the seller but telling the seller you can collect the car in T+2 or T+3 days. In this was the buyer is happy that he got the full money and the seller has the car documents to prove that the car is his now.
I don't see anything wrong in this type of transaction.
Rest Allah knows best.
In india, same here in zerodha app... money is available immediately after sale... eventhough actual settlement take pkace after t+2 days. But the brocker doesnt charge interest for this amount available... is it haram.?
Thank you, I just switched from Robinhood Margin account which is default to Robinhood cash account. This will prevent me from using the unsettled amount before the processing days. Margin account by default violates the halal requirements
Awesome video! Thank you so very much for the info. I have a Robinhood Gold account. Robinhood Instant and Gold accounts are Margin Accounts. Having said that, you have the option of turning off Margin Investment. Also, Robinhood states that deposits are made available instantaneously. Does this mean that we do not have to wait 3 trading days to buy again after selling?
Hi Hassan, did you have a response to your question?
Does the same thing applies to day trading of cryptocurrencies
So trade twice a week or so. Moderation is great
I suggest you start a playlist of who to start trading stocks from A to Z, if you say it is Halal. Because as I know stocks also uses leverage. Will be waiting for your response brother.@parctical Islamic Finance
Another one reason for the prohibition of Day trading is it is considered as speculation. What do think about that?
Salam, what are your thoughts on Prosperitrade they only do halal stocks. Prosperitrade they did DD on EXAS with an oncologist as a special guest.
May Allah reward you brother!
I was really concern about validity of making day trades but you made it very clear.
With due respect, since it's a very crucial matter, I was just wondering if you have Islamic credintials to make such comments?
Rightly Explained Bro. God Bless.
Thank you for this pure information. I want to ask if you execute a trade and the broker takes commision is that halal?
Mashallah Will done barak allah feaak yiy explain very will May Allah reward you
Just because Margin account allows you to short sell and has riba, doesn't mean you have to use it. I day trade on a margin account but I never short sell or use the money I don't have. Also, I'm not sure what you mean by recieving money in 2-3 days because I always get my money the second I click sell, just like most brokers do these days. Great indepth video though.
Lol, trading with margin itself is Haram🤷🏽♂️😏
@@abbamusa6607 hmm...I'm not so sure about that. That's like saying you can't eat halal food on a dinner table where there's pork. If I can confirm your statement, I will try to find an alternative.
I have a cash account on T212, when I sell shares the money is back in my t212 account within 1 minute & the shares i sold are gone i no longer own them so can i then use that money again as it is with me
How about if day trading is funded by a securities firm without interest, only incurring transaction fees for each purchase and sale?
Brother can you please explain futures trading on bitcoin and altcoins
Thanks for the video!
While talking about the margin account, you mention that there are only two types of loans in Islam, charitable and Ribawi loans. And then you make the assertion that the only type of loan that the lender is giving is a Ribawi loan, since there is some benefit that the lender is getting out of it. You mention interest as only one possible benefit, but not the only one. But you didn't specify what other benefits the lender is getting from lendingapart from interest. Could you elaborate on that?
Hi brother, salam, thsnk u for your video very insightful as always. I do have a question , i use etoro and if i close an account/ close the stock the money actually hits my etoro account straight away. In that case isbjt permisabble for me to use the funds to purchase another stock? As its already in mg available balance. Thank u in advance
Does this mean there is no margin given for CNC (cash and carry) trades ?? (Specific to Indian traders) Found this on the margin policy page of zerodha
At Zerodha we provide no leverage when you are executing delivery trades which mean that you if you want to buy Rs 1lk of stock as CNC, you will need this Rs 1lk in your trading account and similarly if you want to sell Rs 1lk of shares with product type as CNC, you will need these shares in your demat account mapped to your trading account.
Hello! Thank you for all the information that you provide for use, so my major is finance and international trad can you advise me what could I do for work in halal way. thanks in advance.
1. Is Day Trading/Buying/Investing in coins like BNB where in the company-Binance- which owns BNB deals indulges in Crypto Loans and giving and taking interests?
2. Could you make a video on DeFi and specific COINS which are Halal or Haram based on the Tokenomics or source of income or idea behind the project.
Thanks really all what u always said is amazing but I want to ask about binary option if it is done based on studies and graphs it will be halal or haram ?
I am waiting for an answer in relations to HFX trading using technical and fundamental analysis to trade. I want to know if it's halal and how I can trade with a broker, haram things to avoid and how to trade in an halal way.
Salaam, why would you compare day trading returns on Warren Buffet/any investor returns? Warren buffet or people looking for annual returns on their investments are not day traders so this would be a false comparison? Successful day trading would require making small profit percentage trades against your losses, and is therefore a completely different percentage return analysis?
am waiting for an answer in relations to HFX trading using technical and fundamental analysis to trade. I want to know if it's halal and how I can trade with a broker, haram things to avoid and how to trade in an halal way.
Your channel is the best. Thanks for the efforts and hard work. Jazakallahu Khairan
Wayyakum Nazim thank you!
JAZAKOM ALLAH KAYRAN for your videos
My remark is about precious metals etfs which are shariah compliant
The settlement is t+2 in general and if they are halal (hand to hand) how it is permissible to trade them many times per day and even if we wait for the settlement like stocks to buy again how they are shariah compliant ?
Shukran thank you
Video starts at 4:00
I have cash account with three different brokers for day trading & always wait until my cash settle before the next purchase. Margin account is so risky & haram too.Thank you brother for your great advice.
Can you explain it in more detail?
What cash settlement?
For most stock trades, settlement occurs two business days after the day the order executes. For example, if you were to execute an order on Monday, it would typically settle on Wednesday.
Day-trading with unsettled funds and debit balances are prohibited in cash accounts. ... You must have all the cash in your account prior to entering an order. A cash account will be put on 90-Day Restriction, if a security is bought and sold without being fully paid for.
@Brother Kayali, are cash donantions to organisation with the expections of political gains also Haram?
is interactive broker do an immidiate cash settlement after sellling the stoke?
Can you please also clarify on options trading if it’s halal ?
Jazakallah ❤️ ALLAHU AKBAR
Thank you so much for clearing this matter to us. May god reward you
Same to you, I'm glad it was helpful!
brother with all deu respect those people you nemed are not day trading. they are investor longterm but if youre a day trader like WWA,RCV,ICT ext.... they make each day around 20 percent.
Brother what is your thoughts on palantir? Jazakallh
Thanks for such Valuable Information ...
very nice video brother, Jazakallah. can you please also address if option trading can be done with only the cash account?
Aslamaualaikum
I want to know that Settel in which accounts dmate accounts or our bank account ? Answers me plzz
I don’t get what you mean in regards to the sale settling before the proceeds are used for any trade. I personally use a Robinhood cash acc and instead of withdrawing my profits into my bank account, I use that buying power (cash ready after trade is complete) to establish a bigger position during the next trade and exponentially grow the amount I allotted myself for day trading. Does this qualify as sales settling?
Yes this is what I was thinking. Money is digitally available on the screen and can be used again to trade. I assume from this video you can only trade once a week (3 days settling and process of withdrawal) and take earnings out into your personal account and then trade again? That doesn’t make sense. This way no more money can be made and for this you’re talking about very big accounts.
@@misszara786 yes wouldn’t make too much sense. There’s Hadith that prohibits futures/options trading but no solid evidence against day trading, that I know of of course
Day trading is halal. Many scholars give fatwa without even knowing how it works or having any experience in the stock market. How is it gambling when you have a stop loss and know how much you will lose at most?
you convinced me bro, thanks.
Baaraka Allahu fiik
interesting! I guess it is possible to control for this in a completely automated (algorithmic) setup.